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BW Businessworld

Professional Traders Will Distribute Wealth In Market: Vikas Singhania, TradeSmart

It is important that we have more professional traders in the market to create a level playing field. This can be done by imparting appropriate training to amateurs. More professional traders will also help in distributing wealth in the market, he said

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With an increase in new traders coming to the market over the last two-three years, the number of amateur traders has increased substantially. Many of these traders have taken to options markets without really understanding the concepts, said Vikas Singhania, Chief Executive Officer (CEO), TradeSmart in interaction with BW Businessworld. Edited excerpts:

Q1. Tell us about TradeSmart, especially for the people who are not aware?

Ans- TradeSmart was founded in 2013 transitioning from a traditional brokerage model to building a discount trading platform from scratch. We are a tech-oriented company and have strived to provide effective, easy to use and cost-effective trading solutions to retail traders. We offer the lowest brokerage plans of Rs 15 per order and constantly work towards enhancing our services.

Q2. How TradeSmart help the new age traders to build their own customised trading?

Ans- At TradeSmart, we offer many features that help traders define their strategies. Some of them would be advanced charts, scanners, learning material etc. We also have APIs that the traders can either use to write their own strategy using a programming language of their choice or integrate it with a third party application.

Q3. Why is it necessary to fill the gap between amateur and professional traders?

Ans- In a zero-sum game like trading, wealth is getting accumulated by less than two per cent of traders. These are numbers that not only we see in India but are true globally. With an increase in new traders coming to the market over the last two-three years, the number of amateur traders has increased substantially. Many of these traders have taken to options markets without really understanding the concepts. 

It is important that we have more professional traders in the market to create a level playing field. This can be done by imparting appropriate training to amateurs. More professional traders will also help in distributing wealth in the market.

Q4. What are the major changes you have witnessed in the industry over the past few years?

Ans- Technology is the most visible change and along with it the ease of placing trades. This was also one of the reasons that we saw millennials joining in. A no-contact environment helped create a vast customer base, not only for Indian investors residing in the country but also globally. Discount brokers coming to the scene have played an important part in reducing the cost of transactions for retail traders and investors. Over the last few years, traders have shifted to the derivative segment from the cash market as they see an opportunity to make a fast buck. 

Q5. Where does TradeSmart see itself in the near future, in terms of growth, efficiency, success and trustworthiness?

Ans- We aim to see TradeSmart as India’s most preferred discount broking platform, applauded for its tech-based approach, sustained efforts and credibility to simplify trading for all. TradeSmart will continue working towards widening its customer base and aims to grow 3X year on year. Technology has been at the core of our services and we believe smart use of technology, prompt customer service and market positioning strategies will help us further grow in our journey.

Q6. What is your target for revenue in the next five years and how will you achieve it?

Ans- We are looking to achieve at least 5 times growth in our revenues in the next five years by further automating most of our services as well as by executing effective marketing, branding and market awareness campaigns to reach our target audience successfully.

Q7. What can we expect from your company in 2022?

Ans- With a rising young population entering the markets, 2022 started off by adding more valuable features to our target audience. We have recently launched an educational initiative – the Knowledge Hub to help new entrants with the basic stock market concepts and terminologies. We know it is a risky affair to follow the herd mentality and hence, our programs to educate the masses will help bridge this problem.

We have more content-based initiatives in the pipeline to quickly level up the trading skills of beginners. Most of the new-age traders are not aware of market ruling factors as well facts from yesteryear, we would like to bring such awareness concepts to our audience.